Analyzing Continuous Improvement Practices

This assignment focuses on analyzing the concept of continuous improvement across diverse fields. It encompasses a range of topics, including employee motivation for participation in improvement activities, the application of clustering algorithms in financial risk analysis, cost-effectiveness analysis in healthcare, and strategic management frameworks. The provided papers delve into various aspects of continuous improvement, such as public investment criteria, risk analysis strategies, and the impact of continuous improvement capacity on business performance.

Three task

Table of Contents
INTRODUCTION...........................................................................................................................1
1. ) The key system and processes used by A.C. Gilbert............................................................1
2.) The three key systems and processes and develop the elements of the review strategy.......1
3.) The way measures, assessment tools and techniques would monitor performance..............4
4.) The variance from plans and target to key results.................................................................6
5.) Trends relevant to the organisation........................................................................................6
6.) the possible use of advice from specialists............................................................................7
Assessment 2....................................................................................................................................8
3.) Performance management strategy related to competitiveness............................................8
4.) management team briefing and consultation session.............................................................9
6.)Summarise results of session and seek group’s approval for amended strategy..................10
7.) results of session into revised strategy.................................................................................10
8.) A risk analysis for strategy..................................................................................................10
9.) A cost-benefit analysis for strategy.....................................................................................11
10 ) Costs and benefits.............................................................................................................11
11.) Submit documents to assessor..........................................................................................11
Assessment 3..................................................................................................................................12
Conclusion.....................................................................................................................................15
References .....................................................................................................................................17

INTRODUCTION
Operational system is a word which is used in data warehousing to mention the system
that is used to activity the data to day transaction of an organisation. In order to perform daily
transaction in an effective and efficient manner this operational system is designed. The present
report is based on A. C. Gilbert who was an inventor and a toy manufacturer who gad invented
the Erector engineering set. The name of his company is Mysto which was founded in 1909. The
present report cover the key systems and processes of Mysto company. Along with this, trend
relevant to the organisation will be discussed. Apart from this, he variances from plans and
targets for the key result areas will be analysed.
1. ) The key system and processes used by A.C. Gilbert
As per the given scenario the key system and processes used by A.C. Gilbert are as
follows
 a. Supply chain: A.C. Gilbert company is an American based toy company. As it is one
of the largest and biggest company in all over the wolrd. It became famous because it
launched Rector Set, that is toy of construction type and similar as a Meccanos across in
different part of the world (Hannah, Schaubroeck and Peng, 2016). The organisation
generally started through supplying various kind of magic shows and Gilbert was also
magician. Through inspiring by the railroads girders he invented the concept of the
Erector. Then after two years he started introducing the construction toys.
 b. Operational systems: The operational system of the A.C. Gilbert started from
designing and ending to distribution of toys to the customers.
 c. Product/service delivery: A.C. Gilbert produced different types of train set however its
most popular line are chemistry set microscopes and is sells Erector engineering sets
which are very famous in children since from last 50 years. Its products such as toys are
very expensive because they were of high quality and its packaging designed is done in
the long lasting metal boxes (Crees, Collins and Turvey, 2016).
2.) The three key systems and processes and develop the elements of the review strategy
The three key systems manufacturing, designing, planning which are discussed with the review
strategy in detail
Manufacturing: Packaging of toys distribution which is considered in the manufacturing
(Hansen, 2014).
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a.) List of key result areas (KRA's):
 Product development
 Preventive maintenance
 Resources utilisation
 Customer satisfaction
b.)lists of key performance indicators (KPIs)
 Order management KPI
 productivity KPI
 quality KPI
 material management KPI
c.) Performance review processes: To align employees day to day activities with business
objectives, creating documentation for legal purpose for making decision and reducing disputes.
d.) sample service level agreement:
Designing: A.C. Gilbert an American inventor of construction type toys such as Erector
construction toy is generally trained at Yale medical school before he founded the Mysto
manufacturing company that sold magic sets. Its one of the famous toy was Erector construction
set (Farrington, Antony and O'Gorman, 2014). This toy become famous because of its interesting
features that consisted of perforated miniature girders that can be attached with screw, gear,
bolts. In the educational time Gilbert invented a diverse field that covers, glass blowing kit,
chemistry set, model train etc. this all are developed with radioactive components.
 Designing strategy: In respect to design innovative product it identified all the latest stuff
that occur in the world of design and that can inspire the organisation to make path for
innovative design oriented business opportunities.
a.) List of key result areas (KRA's): It refers to general area of output or outcomes and it
department is responsible for its result. In simple term it is defined as primary responsibility of
an individual is responsible for accomplishing the goal and objectives. Through prioritising the
activities and it improves their work management (Toner and Moran, 2013).
b.)lists of key performance indicators (KPIs): KPI is a term which is used for indicating criteria
that adopted for measuring the employees' performance such as order management, quality, etc.
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c.) description of performance review processes: There are following points which are included
in the performance reviews such as focus agenda, walk away with perspective, align the timeline
(Jurburg, Viles and Mateo, 2017).
d.) Sample service level agreement: In this both sides that is client and consultant was brought
together and map out each party's responsibility. Further, it is decided to whom can be contacted
at the time when something goes wrong.
Planning: Planning play significant role within the company as it differentiate the
success and failure of the business. Gilber continuously analysed the international market and it
and it also regularly check the brand trends in the area of quality toys (Carver and Klein, 2013).
a.) List of key result areas (KRA's): It developed purchasing policy and planning. Further it
formulate the budget for timely procurement of spares and material.
b.)lists of key performance indicators (KPIs):
 Purchasing cost
 supplier rating
 delivery on time
c.) performance review processes: Below provided are the following points for checking annual
performance review:
 Walk away
 Ratio analysis
 are profitability trends favourable in the company.
Performance report
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3.) The way measures, assessment tools and techniques would monitor performance
Performance measurement is determined as a program for the success as it help in
meeting the goals and objectives, program evaluation are typically in depth examination of
program performance and identifying a program is working (Yuen, Thai and Wong, 2016). There
are 4 main approaches which are identified for the program evaluation that are outcomes, cost
benefits/cost, evaluate process and impacts.
Designing, manufacturing and planning:
 Process or implementation evaluation: It measures the extent to which a program is
operating as it intended. Further it measures, program operations and design the product
as per the customer expectations. A.C Gilbert is a small, traditional company that react
slowly on the traditional design and do not aware of the changes (Zhu, Zhang and Xiong,
2017). Along with this he was over confident that its good name and reputation is enough
in respect to continue trading. These consequences soon became manifest.
 Outcome evaluation: In this measure that program has accomplished the outcome
oriented objectives or not. For this, focus is on output and outcome so that effectiveness
of program can be measured (Aven, 2015). Program process can be measured so that it
become easy to understand the outcome which was produced.
961 (figures approximate)
L/Y Sales Actual sales Difference Profit
$12.6 million $11.5 million ($1.1 million) $20,011.00
Sales prices decreases which is also shown in a reduced in a share price of the A.C Gilbert.
Impact evaluation: In this measure the net effect of a program through comparing with the
program outcomes. There is fall in the profit and share process due to which the organisation
become attractive for the opportunistic businessman (Price Romeiser and Rosengart, 2013). Jack
Wrather who is independent television producers. However, Jack Rather want to make purchase
of successful business because he thinks that Gilbert had opportunity to use its knowledge and
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apply is for the producing innovative toys. Therefore, he purchases 52% of share of A.C. Gilbert
and make it marks on the company.
Cost benefits and cost effectiveness analysis: for producing the product it is important to
compare them with the program output or outcome with costs. With the help of cost effective
analysis the cost to meet the objectives is measured and it can be used for identifying the
different cost alternative for meeting the goal and objectives. In the other side cost benefits
analysis help in identifying the relevant cost and benefits (Ayyub, 2014).
Quality maintenance and continuous improvement: In respect to maintain the standard and
quality of the firm this can be done with the help of strategy. Here company can take serious
action for improving the quality and run business successfully (Barney, 2014).
There are various action taken by the Jack Wrather which are as follows:
 Setting a goal for accomplishing the sales upto 20 million within 1963.
 To enhanced the sales staff upto 50%.
 Introduce new toys lines and increase it upto 307
 Guide employees so that they can adopt the best sales approach.
 It makes traditional toys for the boys and dolls and other such type of toys for girls in
respect to increase number of sales (Kou, Peng and Wang, 2014).
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4.) The variance from plans and target to key results
 Quality – design/manufacturing: It introduces 50 new lines within the twelve month. It
uses its existing engineer and production department and make quality products.
 Sales: Sales staff was increases by 50% and it set the goal to increase sales upto 20
million within 1963. Its sales and profit are down on the 1962 .
 profit: In 1962 its profit was recorded $ 281,000.00. Its sales and profit get down in last
year and there is increase in the sales in 1965.
 supply chain performance (delivery): In the 1962 Jack Wrather had make purchase upto
52% of A.C and in 1964 its sales fell short as per its expectation.
 business growth – Jack Wrather had replaced its existing executives with his own people
and enhanced sale staff for making profit (Holst, Petersen and Wetterslev, 2015). Gilbert
do not have enough employees because of this reason he was unable to make innovative
products which make his company to suffer from loss.
5.) Trends relevant to the organisation
Trends which are identified by the Gilbert is that it produced the train set which become
most popular and its Erector engineering set was become popular among the children from 50
years.
Its strength and weakness are as follows:
The Mysto manufacturing company was founded in 1909 and it manufacture Erector set.
Gilbert had make good position and reputation in the market through selling quality products
(Tegn, Abdelnoor and Bendz, 2016). He was one of the leading toy maker in the U.S wit the
sale of 17 million.
Weakness:
The organisation still producing those kinds of products which are not profitable. Low safety
concern for the products and it is tough for the firm to come up with 1st position in the market.
6.) the possible use of advice from specialists
Internal:
If Gilbert put all its efforts then it can easily accomplish its aims and objectives. They
also have some strategic steps which help ing growth and expansion of the business and also
provide stability in the market (Marglin, 2014). The mission of A.C.Gilbert is to be a low cost,
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profitable and to provide toy to all age children. It makes innovative and quality products and
services for its customers and support the conversion of natural resources.
Measure and report on the progress and performance: With the use of internal and
external communication it becomes easy to accomplish goal as it help in accomplishing social ,
environmental and goals (Rothaermel, 2015).
Lines of communication: Regular meeting with the staff it becomes easy for the manager to
understand the issues which company is facing and provide solution accordingly.
External:
If A.C. Work effectively and conduct external market research then it will become easy
to gain success. It need to give importance to its different stakeholder and fulfil their requirement
so that company can accomplish success (Barney, 2014). Its different stakeholder are basically
suppliers, customers, employees, local community etc.
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Assessment 2
3.) Performance management strategy related to competitiveness
Strategic goal of A.C Gilbert is as follows
 To cover a larger target market from moving to the traditional boy toys to consider doll
of the girls such as Barbie doll.
 To grab attention of the customer and media through advertising products on television.
This for reaching the large number of customers (Eaton, Menzies, and Mishra, 2014).
 Providing more quality product and services to customers and fast paced toys for
grabbing the attention of children. To provide quality products and services in more effective and efficient way (Dunn,
2015).
description of proposed process or amendment to current process
 To retain employees who are skilled as it help making innovative and different product
from its competitor. Further it also valued employees and new employees are required
training facility
 To minimise advertisement upto 50%
 Allocation of the position dedicated for maintaining the quality of the finished product of
each production line (Muennig and Bounthavong, 2014).
 Division of the market team, which is divided into two department. In this one half team
is of marketing department and other half is of sales department.
 Make a customer survey, observation and admit all feedbacks provided.
 Reward system is introduced for employees and allow their growth and development
through training facility (Kim, An and Choi, 2017). Promoting products and services with the help of online promotion tools such as social
media etc.
The way proposal will improve performance and competitiveness
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 The employees which are skilled and trained will be provided team work and group of
people to whom then can trained. It help in developing the knowledge of existing
employees (Chen, Liu and Xiao, 2014). Engineer need to hired and trained in the organisation
KRAs, KPIs, targets.
It developed purchasing policy and planning. Further it formulate the budget for timely
procurement of spares and material.
4.) management team briefing and consultation session
a.) Proposed strategies to team member
In respect to increase sales and profit company can focus on preparing research and
development team within the organisation. Further it can focus on trained the employees so that
they can focus on the demand of the customers (Chen, Liu and Xiao, 2014). Apart from this
company can use social media marketing tool as it is cost effective.
B.) Consider strategy
Pros
In respect to advertise product on social networking site help company in targeting large number
of customer in short period of time.
Further, company can easily increase its productivity through enhancing their skills and
knowledge
Cons
For implementing the propose strategy it leads to consumer lots of cost which can impact the
profitability of the firm for short time.
To improve the strategy company can make group of people who can be trained under the
guidance of senior employees.
It is important to discuss it with team members and other department such as marketing
department, sales department etc in respect to implement it successfully.
C.)
At last it is important to measure all the activities and discuss with other team members in
respect to make changes within the company. Further, company can focus on hiring democratic
leader who can guide and direct the team toward the goal. Therefore, leader can help in
implementing the proposed changes successfully.
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5.)
For the leadership it is important A.C Gilbert to have creative and visionary leader who can help
in reinvent the company. The leader must have vision and detailed strategy for the awareness of
the changing event so that implement the changes (Zhu, Zhang and Xiong, 2017). However,
leader need to take step so that it can make changes in the way of working of employees and
promoting the products and services. Furthermore customer mastery help in understanding the
needs and wants of customers and it can modify the product accordingly. In this regards, A.C
gilbert need to understand what are the needs of customers and company can increase customer
base through introducing the toys for girls such as toys.
6.)Summarise results of session and seek group’s approval for amended strategy.
From the above result it is summarised that the selected stratify can be implemented successfully
if company focus on its different aspects (Aven, 2015). Each group member is ready to go with
the proposed strategy.
7.) results of session into revised strategy.
There are different views and ideas are provided by the team member in respect to implement the
selected strategy. It is important to properly monitor the entire implementation programm so that
changes can be made if required.
8.) A risk analysis for strategy.
In a risk analysis strategy it is important to follow the following steps:
1.) Who will be responsible for carrying out the initial risk assessment : It can be senior staff
member or volunteer of the A.C Girblet.
2.) The scope or focus of the risk assessment: It is important to conduct risk assessment so that if
any risk is identified it can be removed.
3. Who will be consulted : Management team will be consulted so that it become easy for the
company to carry out with discussed strategies .(Price Romeiser and Rosengart, 2013).
4.recording of the findings: A.C Gilbert management team can keep the findings so that it can
easily keep its workplace risk free.
9.) A cost-benefit analysis for strategy
Cost benefit is a systematic approach for estimating the strength and weakness of
alternatives. It helps A.C Gilbert to determine the option which provide the best approach to
accomplish benefits while preserving savings (Ayyub, 2014). Therefore, cost benefit analysis has
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two main purpose which help A.C Gilbert. It help in identifying the investment decision and
provide a basis for comparing the project of the organisation.
10 ) Costs and benefits
The benefits and cost can be show in the monetary terms and it helps in value the money. Further
through promoting its product on social networking site it become easy for the A.C Gilbert to
reduce the cost and increase the profit.
11.) Submit documents to assessor
Briefing and consultation session may be conducted and observed live or via an
appropriate teleconferencing tool and documentation can be submitted electronically or posted in
the mail.
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Assessment 3
Introduction
An action plan is consist of the different types of strategies which have been developed in
respect to organised and prioritised plan of action which is designed for accomplish in the goal
and objectives.
An action plan is identifying the business goal and different types of strategies which can
be introduced for reaching the specific goal (Hannah, Schaubroeck and Peng, 2016). Further, it
also shows the specific action which is need to take place in respect to accomplish the business
strategy. It involves, roles and responsibility, time frame and performance indicator which can be
complimented for accomplish the business objectives.
 The main goal of business are
 Increase in the productivity
 improvement in the sustainability
 Reducing the error in production line upto 20% Waste reduction
Review program system and progress
The innovation management and continuous improvement has been observed that A.C
Gilbert was one of the toy making companies in the U.S.A and in the beginning the period was
great success in 2007. The organization was renowned for making top quality products but the
price is not low as they are maintaining the quality of the product (Barney, 2014). They had a
strong supply chain management which help the company to circulate the product at the doorstep
of the customer. The whole system that incorporate the raw materials into product. The
management was a long and complex process which help to send the products and development
of the concept of the product.
The operation system of the organization is strong enough to another and help to
maintaining the day to day transaction process of the organization (Price Romeiser and
Rosengart, 2013). The management of the company was able to take orders keep contact with a
new customer, sign up with the new customers, and identified feedbacks. The product and
service delivery system it can be depicted the product quality of the company is always good.
The organization mainly concentrating to toys of the boys , the company has to decided to make
toys for the preschool children and aims at the girls between the age of 6-14 years old.
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There are three qualities that helps in determining total quality management. These are
quality planning, quality improvement and quality control. These help in improving the quality
of product. The continuous improvement model includes several process: plan, do, check and
act. These can be used by managers to evaluate the effectiveness of product. On the other hand
key result area helps in determining the outcome of product. Along with key result areas the
organization should also concentrate on feedbacks. It helps in understanding the customer
demands and choices. The product quality also depends on raw materials supplied. The service
quality can be improved with the help of service level agreement. From the sales it can be
determined that the organization is able to maintain the key elements. Supply chain helps in
delivering the goods at doorstep of customer. In 1966 the company adopted various strategies but
failed to become successful because of the poor supply chain management, operating system and
product quality. In 1962 the company increased its sales force and made strong promotional
strategies. But later in 1963 the company suffered a huge loss due to poor quality service. The
new CEO of the company Isaacson reduced the cost of to improve the profit percentage and fired
most of its employees. Due to this the company suffered a lot.
After analysing the continuous development theory and quality management it helps in
identifying the fault in the selected strategy (Crees, Collins and Turvey, 2016). Such as it
company do not focus on reducing the staff member then it will become tough for the A.C
Gilbert to run the business successfully. Further, company need to focus on the quality of its
products and services so that it can easily carry out its business effectively.
Previously, company product quality was appropriate and it helps in earning good growth in the
market. At the time, the organisation was one of the good profit maker. While company also do
not good staff management staff system as its result of 1966 which assist in determining the key
result area. Gilbert was the leading toy making company which operates its business in USA and
its annual sales is 17 million. It is review that the strengthen and weakness of the firm which can
be determined .
The strength of the firm is as follows:
 Renowned company
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 High Quality products
 No ability to change organisational change
 Standard of customers is not good
 Lack of innovative ideas Low employee engagement
Develop option for continuous improvement
The A.C Gilbert has not developed a new strategy from longer time and all same itss
operational activities are carried out for years. In the team briefing of 30 minutes and the
performance management strategies, continuous improvement theories it help in developing
different types of ideas for the betterment of company (Toner and Moran, 2013). One of the main
key stakeholder of the company are employees and they need to manage within the firm.
However, because of the Wrather wrong decision Gilbert suffers from the heavy employees
turnover.
In respect to make position in the competitive market it is important for the management
to focus on development of different strategies and use them in the market. With the
technological development the perspective of the kids changes. As children more like racing car
instead of trains set. Similar to these girls do not like simple doll as they want moving and
dancing goal. This all innovative way help company in gaining competitive advantages. There
are three different key areas on which company is focusing and it help in developing good
position in the market . (Carver and Klein, 2013).. However due to lack of team management
skill and team leader it becomes difficult for the company to accomplish organisational goal. It is
the responsibility of HR department to provide training to employees so that they can easily met
the goals.
Therefore, after implementing new strategies it becomes easy bring changes within the firm.
There is one of the biggest advantage of team work that it assist employees to work effectively
under the guidance of team leader (Jurburg, Viles and Mateo, 2017). There are creative and new
techniques can be used by leader so that team member work hard.
It is identified that training is one of the best process which can be provided to employees
for meeting the organisation goal and there are different risk factors are associated with it. It is
important for team leader to understand the right team management strategies in order to
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motivate employees (Farrington, Antony and O'Gorman, 2014).. The business activities can be
hampered because of the lack of knowledge and understanding among the team member. Apart
from this it is important for the company to understand that strategies which they adopt must be
cost benefits otherwise it lead to increase the cost of the firm and impact profitability.
Implement innovative process
After analysing different types of theories and KPI, KRA etc it helps in developing
understanding related to the best process to maintain the profit and gain competitive advantages.
For this purpose, it is essential to develop action plan (Yuen, Thai and Wong, 2016).
Management need to focus on contingency plan before developing the action plan. It is because
it assists in predicting the risk factors which are as follows;
 Threat of substitutes
 Low cash flow
 low skilled staff
 Threat of new entries
On the basis of risk factor the action plan is as follows:
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Activities 1st
Week
2nd
Week
3rd
Week
4th
Week
5th
Week
6th
Week
7th
Week
8th
Week
9th
week
10th
Week
Conduct
market
survey
Gathering
feedbacks
Analysing
data
Development
of strategies
Implementati
on strategies
Judge the
effectiveness
of the
strategies
Monitor the
entire process
Again collect
feedback
from
customers
Bring
signifiant
changes
Provide
training to
the
employees
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Conclusion
From the above study it is concluded that there in the organisation is important to review
the plan before implementing it in respect to accomplish goals and objectives. There are different
types of strategies which can be implemented within the company in respect to accomplish the
goal. Further action plan need to be developed after the contingency plan so that risk can be
removed. Further it is concluded that, role of innovation in A.C Gilbert this is toy making
company and it grabs large market with the help of innovative strategy.
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